The following updates will not install
Update for Windows Embedded Standard 7 for x64-based Systems (KB2345886)
Security Update for Windows 7 for x64-based Systems (KB2378111)
I have also tried inst6talling them as stand alone installations from MS no luck. As of right now I have them hidden on update page
Go here for a view of the CBS Log Link Removed due to 404 Error
Problem solved
Here is solution tech net gave to problem. I did not know this was possible. learn something new everyday I am in the process of doing this as I post
CSI 00000003@2010/10/13:15:28:39.438 (F) CMIADAPTER: Inner Error Message from AI HRESULT = HRESULT_FROM_WIN32(ERROR_ACCESS_DENIED )
You should make an InPlace upgrade to repair Windows: